23.
24.
25.
Abatements
There are several cases pending before the Board of Tax and Land Appeals and Superior Court
in regard to alleged discrepancies in property assessments. According to the City’s counsel,
the probable outcome of these cases at the present time is indeterminable.
Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment
by grantor agencies, principally the federal government. Any disallowed claims, including
amounts already collected, may constitute a liability of the applicable funds. The amount
of expenditures which may be disallowed by the grantor cannot be determined at this time,
although the City expects such amounts, if any, to be immaterial.
Encumbrances
At year-end the City’s general fund has $3,032,807 in encumbrances that will be honored
in the next fiscal year.
Change in Accounting Principle
During fiscal year 2021, the City adopted Governmental Accounting Standards Board
(GASB) Statement No. 84, Fiduciary Activities, as revised by GASB 97, Certain
Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue
Code Section 457 Deferred Compensation Plans — an Amendment of GASB Statements
No. 14 and No. 84, and a Supersession of GASB Statement No. 32. This required moving
certain items previously recorded through a general fund liability account to the newly
established custodial fund that reports additions and deductions for these activities. No
restatement of beginning net position/fund balance was required in either fund.
New Pronouncements
The Governmental Accounting Standards Board (GASB) has issued Statement No. 87,
Leases, as amended by Statement 97, effective for the City beginning with its fiscal year
ending June 30, 2022. This statement establishes new reporting and disclosure requirements,
including the recording of various operating leases in the financial statements.
Subsequent Events
Management has evaluated subsequent events through April 14, 2022, which is the date
the financial statements were available to be issued.
Debt
On August 24, 2021, subsequent to June 30, 2021, the City issued $64,335,000 in general
obligation bonds, with variable interest rates from 2% to 5%. Principal payments are due
annually starting September 1, 2022 and mature on September I, 2042. S&P Global
Ratings has assigned a rating of AAA to the bonds.
